Nevada Zinc Announces Closing of First Tranche of Non-Brokered Private Placement

TORONTO, Aug. 30, 2023 (GLOBE NEWSWIRE) -- Nevada Zinc Corporation (“Nevada Zinc” or the “Company”) (TSX-V: NZN) is pleased to announce the closing of the first tranche (the “First Tranche”) of its previously announced $500,000 non-brokered private placement (the “Financing”). The First Tranche was comprised of the issuance of 1,750,000 Units by the Company (the “Units”) at a price of C$0.04 per Unit, for aggregate gross proceeds of $70,000.   Each Unit consists of one (1) common share of the Company (“Common Share”) and one (1) Common Share purchase warrant (“Warrant”). Each Warrant entitles the holder thereof to purchase one Common Share at a price of $0.10 for a period of eighteen (18) months from the date of issuance.

The net proceeds from the Financing are expected to be used to fund development of the Company's Lone Mountain deposit, and for general corporate and working capital purposes. The securities issued pursuant to the First Tranche are subject to a statutory standard hold period of four months plus one day from the date of issuance. Completion of the Financing is subject to the receipt of all regulatory approvals, including final approval of the TSXV.

Directors and officers of the Company subscribed for all of the Units issued in the First Tranche. The participation of such directors and officers in the Financing constitutes a “related party transaction” for the purposes of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company is relying on the exemption from the requirements to obtain a formal evaluation and minority shareholder approval in connection with the insider participation in reliance on sections 5.5(a) and 5.7(1)(a) of MI 61-101, as neither the fair market value of the securities to be issued, nor the fair market value of the consideration for the securities to be issued will exceed 25% of the Company’s market capitalization as calculated in accordance with MI 61-101. The Company did not file a material change report more than 21 days before the expected closing date of the First Tranche as the details of the Financing and the participation therein by each "related party" of the Company were not settled until shortly prior to the closing of the First Tranche, and the Company wished to close the First Tranche on an expedited basis for sound business reasons.